Well, maybe love-- or at least hope-- has EVERYTHING to do with it. Continuing where I left off yesterday, I have composed a letter to various executives at the Walt Disney Company. This letter will be sent, and while I don't expect an enthusiastic reply, I do hope it makes a difference. It certainly will NOT make a difference if I keep it to myself!
Anyway, without further ado, here is my letter:
Dear _______,
I could not start this letter without first stating that I am a Disney fan of epic proportion. I've lost count of the number of times our family has been to Disney World. It is truly one of my very favorite places on the planet. We went to Disney World after the horror of nearly losing one of our children, and I can honestly say that experience helped in my healing process. My family has always stayed at Disney hotels, eaten in Disney restaurants, and shopped in Disney stores. I love to be literally immersed in the magic, wonder and charm that is Disney.
While we're not huge investors who may make executives at Disney stand up and take notice, my husband and I do own Disney stock. I was appalled as a stock holder to hear of the recent firing of 250 data systems workers at Disney World so they could be replaced by immigrants on H-1B visas. A company that makes movies where villains are portrayed as greedy, boastful, callous, cruel, selfish and arrogant made a decision to 'reorganize' in this way? This is unethical and hypocritical.
I believe if Disney sells idealism as a hot commodity, its business practices should reflect the same values. Disney asks us to dream, to imagine. All too well I can imagine the horror these tech workers felt upon hearing that not only were they fired, but they had to train their replacements.
The U.S. Department of Labor rules state that, "the hiring of a foreign worker will not adversely affect wages and working conditions of U.S. workers comparably employed." (8 U.S. Code 1182) Yet business tactics such Disney's have done just that: harmed the wages and working conditions of those 250 workers. It seems quite obvious that the Indian immigrants were hired to replace existing Disney World workers at a much lower rate of pay. Not only is this unethical as I stated before, but also appears to be illegal.
This is unacceptable for me as a stock holder. It is unacceptable to me that the Disney board of directors granted CEO Robert Iger a 35% increase for his compensation this year to a whopping $46,500,000 while simultaneously firing a group of people who make a drop in the bucket in comparison. This is the kind of business practice that increases the divide between the rich and poor of our nation, and shrinks the middle class even more.
This is the kind of business that crushes the American dream. So much for America spreading her "golden wings" to "sail on freedom's wind," as so movingly sung in EPCOT's American Showcase. When that attraction gets 'refurbished for my future enjoyment', will there be a new segment on how Disney outsources jobs of cast members so the company can exploit foreign workers to save a few bucks? Somehow I doubt it.
Walt Disney himself once said, "You can design and create the most wonderful place in the world. But it takes people to make the dream a reality." For me, this translates into the very people who create the magic-- the people who run the rides, sell the tickets, drive the buses, wear the costumes, program the computers, and clean the messes in the self-proclaimed 'happiest place on Earth.' These are the cast members of Disney World. They are the foundation of the parks, they are what makes Disney World run like clockwork and feel like no other place on Earth.
One of Sir Richard Branson's 5 rules for good business is this: "Your employees are your best asset. Happy employees make for happy customers." It would seem Richard Branson knows a thing or two about running a business, as evidenced by his enormous success. Job security should not be a serious worry for people who do their jobs diligently and well.
Yet the story of the Disney tech people who suddenly lost their jobs must have caused nothing short of a tremor throughout the entire company. I don't see it as a morale builder for Disney cast members. I don't see this as a tactic to increase loyalty or productivity. And relative to my own self-interest, I don't see this as a boon to me as a stockholder or future customer planning to spend hard-earned money at Disney World. It's bad for business.
Again-- I am an investor in the Walt Disney Company. I carefully chose the stock and company because I believed it would make money for me. It has lived up to my expectations so far. But I also picked the stock because I love all that Disney represents. About the Disney Company, Walt himself once said, "Virtue triumphs over wickedness in our fables. Tyrannical bullies are routed or conquered by our good little people, human or animal. Basic morality is always deeply implicit in our screen legends."
Basic morality is in essence the trademark of Mr. Disney's name and the Walt Disney Company: that good overcomes evil, hard work and honesty matter, and daring to dream can really change the world. Yes, it's idealistic. But I am a customer, and this is what I expect from Disney as a company.
I am not at all pleased, and would like to see that the 250 people who were terminated have their jobs offered back to them.
Sincerely,
Cindy Crowell-Doom
So anyway, there it is. As always, your comments are important! And yes, I will eventually get back to the main point of this blog, which is investing.